Rising US beverage stars add excitement ‘throughout the day’: Symphony IRI
The company’s new ‘Rising Stars’ for 2011 in the beverage arena – those that have not completed a full sales year – include Dr Pepper Ten, Kraft MiO (drink mixes, sports and energy drinks), Sparkling ICE (bottled water) and Starbucks K-Cups (riding a coffeehouse trend towards home consumption).
“Beverage manufacturers are adding excitement throughout the day. For those looking to consume more water, options abound,” Symphony IRI said in its new '2011 New Product Pacesetters' report.
Kraft’s ‘dream beverage’ invitation
For instance, Kraft’s new MiO water enhancer allowed consumers to “create your dream beverage anywhere, anytime”, Symphony said, by simply squirting the product and shaking it.
It added: “Talking Rain Beverage Company is finding success with Sparkling ICE, a line of fruit-flavoured calorie, gluten and caffeine-free waters fortified with vitamin D, B-vitamins and antioxidants.”
The majority of all Consumer Packaged Goods (CPG) new product launches failed to break the $7.5m (€5.69m) barrier for first year sales, Symphony said – the barrier for entrance into its pacesetters club – while only a few that did so achieved $50m sales or more.
Coffees and teas were Symphony’s star NDP pacesetters within the beverage sector, growing strongly in comparison with historic averages (from 2002-2010) and comprising 49% of total beverage pacesetter dollars (versus 10% historically).
This success came at the expense of carbonated, sports and energy drinks (23% of beverage pacesetters down from 45% from 2002-2010), beer, wine and spirits (12% versus 22%) and juices, milks and waters (16% versus 23%).
Single-cup coffee boom
Nine coffee and tea innovations won pacesetter status in 2011, compared to an average of four per year from 2002. Five of those nine coffee and tea launches included single-cup and K-cup coffees.
Folger’s Gourmet Selections K-Cups were the top-selling single-cup coffee launch in 2011, while other brand launches attaining pacesetter status included J.M Smucker, Millstone and Green Mountain.
At Number 4 within Symphony’s Top 10 Food & Beverage New Product Pacesetters, the Folger's brand registered $58.4m in sales, while Gold Peak Chilled Tea scored $44.3m and Bailey’s Coffee Creamer sales hit $44.2m.
“With 2011’s most successful new products, gourmet eating goes well beyond mealtime. Folgers Gourmet Selections K-Cups and Gold Peak Chilled Tea make enjoying a fancy beverage quick, easy and portable,” Symphony IRI said.
Niche innovation gains pace
Meanwhile, pacesetter status in carbonated beverage, sports and energy drinks (CSED) in 2011 was consistent with past norms, Symphony said, but it added that they only accounted for $27m in year-one sales: “This is well below the historical average of more than $58m in year-one, a shift caused by the adoption of a focus on more targeted beverage innovation.”
PepsiCo, for instance, had launched two specific-use Gatorade products in its G Series line: a pouch filled with ‘pre-game fuel’ called Gatorade Prime and Gatorade Recover – a post-workout beverage with protein to help rebuild muscles.
“Niche innovation is likely to continue to gain momentum in the future. As this evolution takes place, it will be critical for consumer packaged goods manufacturers to base these efforts on an intimate understanding of the needs and wants of their target audiences," Symphony IRI said.
